Zillow CEO Spencer Rascoff. (GeekWire Photo / Kevin Lisota)
Zillow Group for the first time revealed revenue from its new home-buying and selling business as part of its third quarter earnings report.
Zillow CFO Allen Parker. (Zillow Photo)
The Seattle-based company just missed analyst expectations with $343 million in revenue last quarter, up 22 percent year-over-year, and posted non-GAAP earnings per share of $0.18. Wall Street expected EPS of $0.17 on revenue of $344 million.
Shares were down more than 17 percent in after-hours trading. Zillow reported lower-than-expected revenue from its Premier Agent business during the quarter due to “higher-than-expected advertiser churn” following changes to the program.
“We believe the issues in the Premier Agent business are temporary and solvable, and in fact we have already made changes to improve advertiser retention and drive acceptance of the new model,” Rascoff said in his letter to shareholders.
Zillow also announced the hiring of Allen Parker as the company’s new chief financial officer. Parker previously spent more than 12 years at Amazon and was most recently vice president of finance overseeing its worldwide Amazon Devices, Appstore and Amazon Pay businesses. Parker replaces Kathleen Philips, who retired from the role in May. Zillow’s interim CFO …read more